Asked by MARIA URIEL CIFRA on Apr 25, 2024

What is the marginal tax rate and how is it determined?

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the percentage of tax applied to their highest dollar of income.

  • Clarify core tax concepts, highlighting proportional and regressive tax systems, and the contrast between marginal and average tax rates.